January 18, 2024

Coaches Lab: When Will Shops Stop Doing Work That They Don’t Get Paid For? [THA 363]

58 minutes

It's time to find the hidden costs of 'busyness' in auto repair shops. It's not just about the work you do; it's about the work you're actually getting paid for. Measuring technician productivity is crucial - because if you're not measuring it, you can't manage it. It's a wake-up call for shops everywhere to stop leaving money on the table.

Bill Haas, Haas Performance Consulting, Bill’s previous episodes HERE.

Murray Voth, RPM Training. Listen to Murray’s previous episodes HERE

Maylan Newton, ESI- Educational Seminars Institute. Maylan’s previous Episodes HERE

Show Notes:

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The Importance of Shop Productivity (00:01:41) Discussion on the significance of measuring productivity and ensuring work is paid for.

Challenges in Understanding Business Numbers (00:05:39) Discussion on the lack of understanding of business numbers and pricing strategies in the automotive industry.

Implementing Time Clock Management (00:09:12) The importance of implementing time clock management and its impact on shop productivity.

Setting Expectations and Accountability (00:11:14) The need for setting expectations and holding employees accountable for their performance.

Challenges in Coaching and Accountability (00:12:25) The difficulty in coaching individuals who resist change and accountability in their business practices.

Labor Rates and Coaching (00:18:40) Discussion on the impact of labor rates and the value of coaching in the automotive industry.

Comparing Labor Rates (00:20:17) Debate on the practice of comparing labor rates and the importance of charging enough to pay employees.

Technician Interviews and Billing (00:21:50) Perspective on technician interviews and billing practices, including misconceptions and lack of understanding.

Business Education and Financial Planning (00:26:01) Importance of business education, financial planning, and understanding where the money goes in an automotive shop.

Year-End Spending and Tax Strategies (00:27:16) Discussion on year-end spending, tax strategies, and the significance of paying fair taxes.

The value of pricing (00:35:42) Discussion on the importance of presenting value over price in a competitive marketplace.

The market for different pricing strategies (00:39:18) Highlighting the existence of markets for both top-tier pricing and lowest cost options, with a comparison to the tool market.

The challenge of selling value (00:40:10) Debating the myth of offering better value and emphasizing the importance of growth and selling maintenance services.

Defining fair pricing and value (00:40:40) Challenging the concept of fair pricing and discussing the perception of value in the eye of the beholder.

Improving customer communication and value presentation (00:41:07) Emphasizing the importance of showcasing the quality of services, such as brake jobs, and the value they provide to customers.

Challenges in selling diagnostic services (00:43:00) Discussion on the difficulties in selling diagnostic services and the need to shift from focusing on hours to tangible products and value.

Efficiency in customer interactions and value communication (00:46:12) Emphasizing the need for efficient information gathering and value communication to customers during the intake process.

The need to change industry mindset (00:52:07) Encouraging a shift in mindset within the automotive repair industry to drive change and success.

The shop's transformation (00:54:08) Discussion on the positive changes and experiences after implementing changes in the shop.

Clientele shift (00:55:00) The impact of changes on the clientele and the feedback received from customers.

The value of preaching (00:56:06) Exploring the significance of preaching and the positive outcomes it brings in terms of leadership and company growth.

Reward and challenges (00:57:00) Acknowledging the challenges and rewards of making significant changes in the business.

Thanks to our Partner, NAPA TRACS

NAPA TRACS will move your shop into the SMS fast lane with onsite training and six days a week of support and local representation. Find NAPA TRACS on the Web at http://napatracs.com/

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By Carm Capriotto, AAP

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